Eaze CEO Cory Azzalino on what’s next after the company’s $10 million fundraise

In a candid conversation with Cultivated Media’s Jeremy Berke, Eaze CEO Cory Azzalino shared what’s next for the company after its $10 million funding round and legal restructuring. 

From receivership to revival

Eaze’s journey to this point has been anything but smooth. The company was founded as a cannabis delivery service, the ‘Uber for weed’ in Northern California in 2014. Its prior entity, Eaze Technologies, Inc., faced financial turbulence following a Series E raise — which valued the company at $700 million — and subsequent debt round in 2022. Breaking debt covenants led to a foreclosure process, culminating in an auction where secured creditors acquired the company’s assets. These assets are being transferred to a new entity, Eaze Inc., which will officially operate starting January 1, 2025. The restructuring process effectively wipes out $350 million in equity raised under the old entity, providing a fresh start with a clean balance sheet.

A path forward

The $10 million funding will primarily support operational needs, including finalizing upgrades to Eaze’s Florida production facility and opening new stores. With operations in California, Colorado, and Florida, the company plans to expand its profitable delivery and retail services while addressing growth bottlenecks, particularly in Florida. A power upgrade at its production facility is expected to double output, helping meet demand across its 43 planned locations.

Balancing profitability and growth

Eaze’s delivery business, while less profitable than retail, remains a key pillar. Recent tech advancements, such as scheduled delivery, have improved efficiency and customer satisfaction. This feature already accounts for 11% of orders and positions Eaze to expand its delivery services into Colorado and Florida once production constraints are addressed.

As part of the asset transfer, all employees of the old entity will be terminated by year’s end. However, the new company plans to rehire 1,200 operational roles, emphasizing partnerships with unions such as UFCW in California.

Looking ahead

While Eaze faces challenges in a declining market, Azzalino remains optimistic about the company’s potential. By focusing on its three core markets and achieving profitability in Florida, Eaze aims to consolidate its position as a leader in cannabis retail and delivery. With a clean slate and strategic investments, the company is poised for sustainable growth in a competitive industry.

Read more: Eaze and the cannabis ‘unicorns’ that never were 

Editor’s note: This summary was put together using generative AI and checked by a human editor.

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